The subject matter of this invention relates generally to VAR generators and relates more specifically to VAR generators of the type employing banks of switchable fixed capacitors utilized in conjunction with switch controlled inductors for producing positive and negative VARS. It is known to make VAR generators by connecting a fixed capacitor and a switched inductor in parallel across two lines of an electrical system which is to be regulated or controlled by the VAR generator. A suitable control system is provided for sending an output signal to the switch portion of the switched inductor to establish a conduction interval therefor during a predetermined period of time. The conduction interval allows current to flow for a portion of the predetermined period of time thus generating an inductively reactive current which interacts with fixed capacitively reactive current to produce a net reactive current which cooperates with the voltage across the lines to produce reactive power. Th predetermined interval of time is usually one-half cycle of the line voltage. Consequently, on a half cycle by half cycle basis, the switching interval can be changed to provide differing amounts of reactive power as is determined is necessary by the calculating control portion of the system. Systems of the previous type can be found in U.S. Pat. No. 3,936,727, issued Feb. 3, 1976 to F. W. Kelly, Jr. and G. R. E. Laison, and U.S. Pat. 3,999,117, issued Dec. 21, 1976 to L. Gyugyi et al. The latter patent is assigned to the assignee of the present invention. The values of capacitance and inductance are usually chosen in the prior art so that at a moderate conduction interval for the switched capacitor, the produced inductive current is approximately equal to the fixed capacitive current thus producing zero VARS. Consequently, if the conduction interval is increased, the amount of inductive current increases producing a net inductive reactive current. On the other hand, if the conduction interval is decreased, the inductive current is decreased producing a net capacitive reactive current. This capability gives positive and negative VAR capability to the system. A system of this type has a number of problems, however. One problem lies in the fact that at a stand-by condition or of a condition where no VAR generation is required, appreciable power generation may be required in each of the inductive and capacitive components of the system. Said in another way, in a system of the type previously mentioned, significant inductive current is generated at a time when no VAR correction or production is required because the significant inductive current is utilized to cancel the oppositely phased significant capacitive current. This means that there are relatively high stand-by losses. Furthermore, for any given amount of maximum VAR correction either negative or positive, minimum values of capacitance and inductance are required. An improvement of the aforementioned system includes utilization of an inductive branch and a capacitive branch in which the inductive branch operates independently of the capacitive branch and vice verse. In this sytem at standby, neither the inductive portion of the system or the capacitive portion of the system conducts appreciable current and therefore the standby losses are lower than in the aforementioned system. Net inductive current is provided by using the inductive portion of the system exclusively; and net capacitive current is provided by using the capacitive portion of the system exclusively. However, a problem is present with this kind of system in that the use of a capacitive branch is not conducive to continuous switch control over a wide range of capacitive currents as is the use of an inductive branch. In the prior art therefore, the capacitive portion of such a system utilizes a bank of discrete capacitors with each having a separate switch. The net capacitive reactance for capacitive VAR production is provided by judiciously picking cominations of capacitors in the bank of capacitors to provide discrete values of capacitance. As mentioned however, such a system has the inherent disadvantage of only allowing discrete values of capacitive current to be produced. Thus, control over a continuous range is difficult if not impossible. In the range of capacitive VAR demand, only a relatively few values of capacitive current are available. As a consequence, VAR compensation or correction in the capacitive range is at best an approximation. It would be advantageous therefore, if a system could be found which utilized continuous VAR control in both the capacitive and inductive regions, but in which stand-by losses were minimized and in which the relative size of the inductive and capacitive components could be reduced below the previously discussed minimum for a given range of correction. It would be further advantageous if the control arrangement for such a system were such as to provide continuously variable VAR output and fast transient response.